Undeniably, whatever your Forex trading rules are, they are also your money. Whenever you consistently follow your rules, you undoubtedly make money. Nonetheless, if you do happen to break your own trading rules, losing money will more than likely be the overall outcome.
Once you develop a reliable set of forex trading rules, it is direly important to always keep them in mind. Here is one discipline that can reap rewards. It would be a good idea to habitually read and follow these rules before beginning your day, and again after your day is over.
Rule #1: Always Follow Your Own Set of Rules
Traders who have had the best Forex training know how to develop a specific set of trading rules that should always be followed. It is human nature to develop a desire to deviate from, or even sometimes break these rules, even if they are our own. It will inevitably require consistent discipline to continuously act in accordance with the Forex trading rules that you do establish for yourself.
Rule #2: You Never Should Risk Over 3% of Your Total Portfolio
There are, and always will be, numerous veteran traders, just as there are, and always will be numerous daring traders. But one thing is certain, there have never been, and most likely never will be, any veteran daring traders. Additionally, it is truly fundamental to successful Forex trading over time, to always keep your capital base protected.
Rule #3: Whenever You Are Wrong, Always Cut Your Losses At 5% to 15% No Matter What
There are traders who will cut their losses at an even lower percentage. However, the most important point of Forex trading is to always have determined “set points” (also referred to as a “stop loss”) within the limits of the loss amounts you are willing to sustain. Also, continuously keep yourself well-informed about your tarding performance, and always maintain your “stop loss” point.
Rule #4: Set Price Targets Are Always a No-No
This specific Forex trading method will allow you to always get the most out of your trades. Learning the best forex trading signals will allow you to simply let your profits run. To be realistic, you will never be able to pick tops. Additionally, you should not ever assume a trade has gone up too high, much too quickly. Always be willing to reinvest a decent percentage of your profits with positive anticipation of much larger profits.
Do remember that the biggest monies are usually made from making the really huge trading moves that you will be able to catch occasionally.
Rule #5: Make Sure To Master One Forex Trading Method
It is in your best interest to continue to learn and constantly hone this particular trading style. This will ultimately better your chances of learning what the best Forex signals are. Jumping from one method of training to another is never a good idea. Mastering one specific method is undoubtedly better than becoming an “average implementer” of several different Forex trading methods.